Did you know that the additional payroll cost of hiring a new employee often ends up being almost 1.5 times their salary?
It may be ironic that payroll costs a lot of money to run, but that doesn’t mean there aren’t ways you can manage payroll so that it’s as smooth and efficient as possible.
Are you wondering what you need to get done? Keep reading to learn all about how to stay on top of your payroll costs.
Simply put, your small business payroll needs to be as accurate as a clock in every way possible. Whether you have one certified public accountant or 10, it’s important that every CPA has the skills and experience necessary to avoid amateurish mistakes.
The snowball effect can definitely apply to the payroll department. One tiny mistake can end up having disastrous consequences if it isn’t caught early on and fixed.
Be Realistic About Perks
The more prerequisites your employees have, the more payroll expenses you’ll be left with. While it’s important to treat your employees with as many perks as possible, you shouldn’t empty out your bank account in the process.
This is why it can sometimes be necessary to cut back on some perks and get rid of others entirely if you decide that they put too much of a burden on the company.
Whether you’re just starting out or business is slow, you can rest easy knowing you could get some extra help through the power of loans.
Allow for Direct Deposit
There’s no getting around the fact that checks are the way of the past. Not only do they create more work for you, but they can get lost or even be stolen.
One of the easiest ways to reduce labor costs is by instituting direct deposits as an option. Instead of tracking a bunch of checks, you can put a payment right into an employee’s bank account. Best of all, it’s much safer and quicker than sending out paper checks.
There is a wide range of ways you can boost productivity within your payroll department. One way of doing this is by upgrading the software your payroll employees use. The new software should allow them to complete more work with less effort.
You can also increase productivity by training employees. Even a veteran employee can stand to learn new tips and tricks.
Ready to Manage Your Payroll Costs?
Now that you’ve learned all about how to stay on top of your payroll costs, you can make sure that your department is allowing your business to run as smoothly as a well-oiled machine. After all, a payroll department should allocate your resources in the best way possible rather than use them up.
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